Many of the self-employed are looking for retirement planning ideas. Such options as the Self-employed Keogh plan are available, and one can always open an IRA, as long as he or she is earning taxable income. But one option that many do not known about is the self-employed 401(k).
The self-employed 401(k) is actually quite easy to set up (don’t confuse it with setting up a 401(k) for employees as well — that’s where it gets complicated). And here are some of the benefits that come with the self-employed 401(k):
- Higher contribution limits than other retirement plans
- Move your assets from traditional IRA (NOT Roth) into your self-employed 401(k) to consolidate
- Inexpensive to maintain
- Contribution flexibility
Before deciding on a retirement account option, or even if you already have a retirement account, carefully consider the self-employed 401(k). You might find that it might fit your needs.
For more retirement account and planning ideas for the self-employed, visit my post Retirement Planning when Self-Employed.